In The Hot Seat...

As a property litigator, over the past couple of years I have noticed a marked change in the nature of cases landing on my desk; more contested dilapidation claims, challenges on the validity of break options and claims against former tenants and guarantors.

Tougher economic conditions have led to an increase in the number of proceedings issued in the High Court in 2006 and 2007, reversing six years of steady decline triggered by the Woolf reforms which encouraged parties to settle their disputes outside the courts system. However, the reforms were introduced when the economy was robust. The reforms are now facing their first real economic stress test. Financial squeeze always tends to cause an upturn in disputes and litigation. During the first quarter of 2008 mortgage re-possession claims issued were 16% higher, and landlord re-possession claims were 4% higher than in the first quarter of 2007. The